non physical import of drawings and designs.

[SANTHANA KRISHNAN]

kindly clarify:

apart from GST @ 18%, any tax is to be paid whilst making payment to the Overseas supplier for the import of designs and drawings thru digital form.(no physical import).

regards

J Ramamurthy

7299162725

[YAGAY andSUN]

In our view there would not be any other tax. However, if any kind of royalty is being paid then GST on such royalty amount would be payable.

[KASTURI SETHI]

As far as I rembremer Sh.Kishan Barai, an expert in this field has already posted reply. Querist is requested to either contact him or trace out his reply in this forum.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Yagay and sun

[Kishan Barai]

No, nothing apart from it. Thanks, Kasturi Sir for remembering me.

AI Summary

GST on import of drawings and designs applies; royalty payments are taxable services and attract GST under service law. Only Goods and Services Tax is chargeable on payments to an overseas supplier for digital import of drawings and designs; no other tax applies merely because the supply is non physical. If the payment is characterised as a royalty, that royalty component is also subject to GST as a taxable service.